The bill amends sections 476a and 476b of the Michigan Insurance Code of 1956, primarily focusing on the taxation and regulatory requirements for domestic and foreign insurers. It establishes that if a foreign insurer is required to make deposits or payments in its home state that exceed those required of domestic insurers in Michigan, it must make equivalent deposits and payments to the Michigan state treasurer. The bill also clarifies that an insurer organized outside the United States is considered an alien or foreign insurer based on where its general deposit for policyholders is made. Additionally, it introduces a provision allowing insurers to claim a tax credit against the tax imposed under section 476a, equivalent to the state low-income housing tax credit they would be eligible for under the income tax act.

The bill also updates the language regarding the taxation of authorized insurers, specifying that they are subject to the tax outlined in section 476a or the Michigan business tax act, whichever is greater. It removes references to the former single business tax act and clarifies the administration of taxes under the current law. The enactment of this bill is contingent upon the passage of two other specified bills from the 103rd Legislature.

Statutes affected:
Senate Introduced Bill: 500.476
As Passed by the Senate: 500.476